A falling flat tax, four mild seasons, and top hospitals. Watch out: pensions and IRA withdrawals get no special break.
The short version
Social Security: not taxed at all.
Pensions: Pensions taxed as regular income (most pre-1989 vested public pensions exempt under the Bailey settlement).
401(k) and IRA withdrawals: 401(k)/IRA withdrawals taxed as regular income.
The setup: Flat 3.99% in 2026, scheduled to fall.
The average effective property tax rate is about 0.66% — roughly $1,980 a year ($165 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: $25,000 (or 50% of value) exclusion for homeowners 65+ with modest income.
Try your own home value in the Property Tax Estimator.
Overall cost of living runs about 2% below the U.S. average. The combined state and average local sales tax is 7.10%.
January days top out around 51°F and July days around 89°F, with roughly 218 sunny days a year. Watch out for: Hurricanes on the coast; occasional ice storms inland.
Duke, UNC, and Wake Forest anchor excellent care in the Research Triangle and Charlotte.